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WEALTH ADVISORY SERVICES
FOR RETIRED INDIVIDUALS

Legend Financial Advisors, Inc.® (Legend), with its headquarters located in Pittsburgh, Pennsylvania, offers Retirement Services to affluent and wealthy individuals and their families.  These services include the following:

  • Investment Management
  • Personal Financial Planning and Business Financial Planning 
  • Retirement Accumulation and Distribution Planning Services
  • Diversification Strategies for High-Equity Concentrations
  • Family Estate Planning and Trust Services
  • Philanthropic Planning
  • Evaluation of Social Security Benefit Options and Medicare Insurance
  • Evaluation and Selection Assistance with Long-Term Care and Medigap Insurance
  • Evaluation and Selection Assistance with Nursing Homes, Assisted Living Facilities, and At-Home Health Care Living Arrangements

Affluent and Wealthy individuals and their families face highly complex advisory needs in retirement.  Through Legend’s experience and vast network of financial and legal professionals, we provide value-added guidance and solutions to these complicated financial issues.

TABLE OF CONTENTS

  1. WHAT WE DO
  2. INVESTMENT MANAGEMENT
  3. PERSONAL FINANCIAL PLANNING
  4. RETIREMENT ACCUMULATION AND DISTRIBUTION PLANNING 
  5. DIVERSIFICATION STRATEGIES FOR HIGH-EQUITY CONCENTRATIONS
  6. FAMILY ESTATE PLANNING AND TRUST
  7. GIFTING
  8. PHILANTHROPIC PLANNING
  9. EVALUATION OF SOCIAL SECURITY OPTIONS AND MEDICARE INSURANCE
  10. EVALUATION/SELECTION ASSISTANCE WITH LONG-TERM CARE AND MEDIGAP INSURANCE
  11. EVALUATION/SELECTION ASSISTANCE WITH NURSING HOMES, ASSISTED-LIVING FACILITIES, AND AT-HOME HEALTH CARE LIVING ARRANGEMENTS


WHAT WE DO

Retirement can be a wonderful period in one’s life.  However, complexities can set in due to poor health and/or the onset of advanced age due to significantly longer lifespans.  Legend provides Personalized Retirement Services including Investment Management, Personal Financial Planning, Business Financial Planning, Retirement Accumulation as well as Distribution Planning, on a No Commission, Fee-Only basis.  Legend’s objective is to deliver personalized services to ease the everyday burden that retired clients face, in addition to the innovative financial advice that we believe is unequaled in terms of quality, from which clients can derive maximum value.

Legend expects to achieve its objective by providing all firm members with extensive, ongoing internal and external education by utilizing cutting edge financial information, management, technology, hardware and software, while capitalizing on our extensive national and local networks of other financial professionals.  Legend continually creates new services not offered by our competitors that are of value to the client.

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INVESTMENT MANAGEMENT

Legend offers personalized Investment Management Services to individuals and institutions.  Investment portfolios are developed to match the client’s return and risk requirements, which are determined by the clients’ completion of a Risk Comfort Zone Questionnaire, with the guidance of a Legend advisor.  Each type of investment portfolio is managed to achieve both the short and long-term investment objectives of the client.
 
 
INVESTMENT PROCESS
 

Investment Portfolios:

For a description of our investment portfolios, please see our Risk Spectrum chart. 

Investment Research:
 
Legend performs extensive research as to how to structure investment portfolios.  Emphasis is placed on developing portfolios that have historically achieved high returns, but with lower-than-normal risk.
 
Sources of Current and Historic Worldwide Financial Market and Economic Data include:
  • Investment newsletters, newspapers, periodicals, research publications, and professional journals
  • Portfolio Managers (Legend interviews in excess of 75 portfolio managers per year)
 
Client Education:
 
Education is very important to us.  Legend is dedicated to educating each client about the different investment portfolio types and how they relate to market volatility, time horizons, and investment returns.  It is our goal to ensure that the client understands and agrees with our investment philosophy.  Furthermore, we assist each client in selecting a risk comfort zone with which they are comfortable.  Ultimately, an investment portfolio is designed to meet the client’s objectives.
 
 
PERFORMANCE REPORTS
 
Investment Management clients receive quarterly performance reports.  The report details the portfolio performance during the client’s fiscal quarter and provides a comparison against a number of indices.  While providing detailed information, these performance reports are easy to read and understand.
 
 
To view additional information on the Investment Management Services Legend provides, please see our Summary of Investment Management Services.

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PERSONAL FINANCIAL PLANNING

INITIAL DEVELOPMENT:

After a client completes an extensive data questionnaire and delivers all relevant financial documents, Legend will develop a personal financial plan.  It will address the following areas:

  • Preparation of financial statements including federal and state income tax projections
  • We can coordinate any tax information with the client's accountant
  • Basic finance issues, such as debt structure, liquidity and cash flow issues
  • Development of Investment Strategies including hedging and tax-sensitive strategies
  • Income tax strategy optimization, including providing alternative financial and legal structures
  • Education funding
  • Retirement planning as well as accumulation and distribution strategization
  • Estate tax reduction analysis and philanthropic decision-making
  • Trust Services through one of our independent trust company strategic alliances, if applicable
  • Survivor needs analysis
  • Risk Management/Asset Protection, including analysis of all insurance coverages
  • Stock option exercise strategies, if applicable
  • Retirement plan compliance, if applicable
  • Business planning, if applicable

RECOMMENDATIONS:

As part of the financial planning process, Legend develops specific recommendations addressing each of the above-listed areas.  During this first part of the process, the client will meet with a Legend advisor approximately four to seven times, typically within the first six-month period of the client relationship.  Each meeting will vary between two and four hours, depending upon the complexity of the client’s situation.


Once the recommendations are made, Legend will then assist in the implementation of the recommenda­tions where it can.  A few examples include:

  • Arranging loans, including mortgages and personal loans with private banking departments of banks and, when necessary, introducing a client with commercial loan needs to an appropriate banking officer
  • Providing a banker with appropriate financial information to arrange or renew a loan for the client
  • Sending financial information to attorneys so that they prepare the necessary estate documents, including wills, trusts, powers of attorney, health care proxy, and living wills
  • Sending tax information to accountants, such as bonus payments and gains and loss information on the sale of securities, etc. in order to make appropriate estimated tax payments
  • Requesting information on the policy status of life insurance and annuity policies on behalf of the client (This information would include such items as death benefits, cash values, surrender charges, beneficiaries, tax basis, investment return, etc.)
  • Calculating the tax basis of securities on behalf of clients
  • Requesting insurance quotes on behalf of clients

Our objective is not to necessarily reduce the complexity of the client’s financial situation, because sometimes it does make sense to utilize trusts and other strategies to reduce taxes and achieve family friendly objectives.  Rather, our goal is to save our clients the time and the energy that it takes to manage his/her complex situation so that they are free to focus more closely on matters that mean the most to them.

ONGOING SERVICE:

During the first twelve months of service, as well as all ensuing years that Legend is retained, the client is entitled to unlimited phone calls, meetings, service, and advice.
 
To view additional information on the Personal Financial Planning Services Legend provides, please see our Summary of Personal Financial Planning Services.

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RETIREMENT ACCUMULATION AND DISTRIBUTION PLANNING

Many of our clients are interested in receiving guidance regarding retirement planning services.  They especially want to know how much they need to accumulate, when they can retire, how to spend down their assets in the most tax-efficient manner and finally to distribute their assets to their heirs upon their death.  Legend’s retirement accumulation and distribution planning services address all these areas and more.

Legend assists each client during this stage of their life in a number of ways including:

  • Counseling each client with regard to how to invest and accumulate monies for retirement during their employment years
  • Performing extensive retirement calculations both before and during retirement to determine if the clients’ assets will be adequate to live on
  • Advising each client as to what assets to spend down
  • Guiding each client through the complex regulatory environment as how to distribute these assets from IRA’s and other retirement plans in the most tax-efficient manner, especially if the client is younger than age 59½
  • And finally, facilitating the planning and transfer of the assets to the client’s heirs

These services are part of the personal financial planning service.

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DIVERSIFICATION STRATEGIES FOR HIGH EQUITY CONCENTRATIONS

This service is designed to assist clients who have a large percentage of their net worth in one stock.  While the simple solution is to sell the stock and pay the taxes owed, it may not be the most optimal one.  There are a number of alternatives that can be utilized to maximize value.  However, since many of the strategies are long-term in nature, finding the one most comfortable for the client entails a significant amount of planning around the overall financial goals of the client.  Legend will review with each client a myriad of strategies including; gifting to family members, charitable-giving strategies, hedging through the use of puts and calls, also known as equity collars, tax loss harvesting or the transfer of a highly appreciated security into a diversified private equity pool of securities, also known as an exchange fund.

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FAMILY ESTATE PLANNING AND TRUST

 

Legend works closely with a client’s attorney in the development or revision of a client’s estate documents, including wills, trusts (including Revocable Living Trusts, A/B Credit Shelter Trusts, Irrevocable Life Insurance Trusts, Q-Tip Trusts, Intra-Family Gifts and Family Trusts), powers of attorney, health care proxy, and living wills.  Trust services can be provided through one of the independent trust companies that we have strategic alliances with.  The use of trusts allows clients to make a conscious decision regarding the passing of their wealth, during their lifetime and upon death, while retaining control.

In addition to estate document preparation, Legendwill assist clients by verifying that their beneficiary designations on retirement plans and life insurance policies coordinate with the language within their estate documents.  The titling of assets will also be reviewed to coordinate with the estate documents.

If applicable, additional advanced estate planning techniques that Legend will advise clients on include: Family Limited Partnerships, Limited Liability Companies, Standby Trusts, Foreign Situs Trusts, Medicaid or Special Needs Trusts, Generation-Skipping Transfer Trusts, Qualified Personal Residence Trusts, Self-Canceling Installment Notes, Private Annuities, Sale-Leaseback Transactions, Remainder Interest Transactions and Split Interest Transactions.

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GIFTING

Legend assists its clients in making wise decisions regarding gifting.  Gifting has always been a method of reducing an estate. Individuals are permitted to make gifts of up to $10,000 per year to as many individuals as they wish without paying gift tax.  Married couples can make gifts of up to $20,000 per year.  Individuals can also gift unlimited amounts for tuition payments and medical bills. Therefore, careful planning is necessary to stay within the limits, otherwise gift taxes will be assessed.  Legend counsels its clients regarding various types of gifts including: securities, real estate and business ownership interest, in addition to cash gifts so as to avoid gift taxation while accomplishing estate planning objectives.  Legend also advises those clients who would be affected by the Generation-Skipping Transfer Tax as to how to avoid the tax.

 

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PHILANTHROPIC PLANNING

Legend assists clients’ in identifying their personal and family philanthropic values and priorities as well as designs a plan to fulfill them. Individuals can take advantage of different methods of making philanthropic gifts.  For example, an individual investor could gift highly appreciated stock, instead of selling the stock and incurring the capital gain taxes.  A real estate owner may want to give property, which has low earnings and because the management of the property is time consuming or facing a declining market value, but still is marketable.  Here again the owner would avoid the capital gains tax as well as obtain income tax savings from the charitable deduction.  Specific strategies that will be evaluated will include: Charitable Gift Annuities, Charitable Lead Trusts, Charitable Remainder Annuity Trusts (CRATs), Charitable Remainder Unitrusts (CRUTs), Net Income Charitable Remainder Unit Trust with Make-up Provisions, Flip Trust, Charitable Pooled Income Funds, Charitable Lead Trusts, and Private and Public Charitable Foundations.

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EVALUATION OF SOCIAL SECURITY OPTIONS AND MEDICARE INSURANCE

A service included in the Financial Planning process is the review of social security benefits.  As a client approaches retirement, does it make sense to begin taking benefits at age 62 or should they wait until age 65?  Will those benefits be taxable if taken before age 65? Legend will also review the client’s Social Security Earnings Statement to make sure that all of the previous years earnings have been included.

Medicare is a federal health insurance program for persons 65 or older, persons of any age with permanent kidney failure and certain disabled persons, who are eligible to receive Social Security benefits.  All eligible participants receive Part A (Hospital Insurance) without charge.  Legend assists clients in determining if the client needs Part B (Medical Insurance) protection, which has a monthly premium.  The discussions also cover additional protection with Medigap Insurance, which is outlined in the section entitled “Evaluation and Selection Assistance with Long-Term Care and Medigap Insurance”.  If a client is not eligible to receive premium-free Part A benefits and is age 65 or older, the coverage can be purchased.

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EVALUATION/SELECTION ASSISTANCE WITH LONG-TERM
CARE AND MEDIGAP INSURANCE

This service is to assist clients in determining if there is a need for Long-Term Care Insurance.  Legend will evaluate the client’s ability to be self-insured.  If there is a need for coverage, the client will be aided in choosing a carrier and selecting the benefits that coordinate with their needs.  This service is part of the personal financial planning service.  Also, if the client so desires, they may want to consider living arrangements other than their present residence, for example: Continuing Care Retirement Communities.  For more information refer to the Evaluation and Selection Assistance with Nursing Homes, Assisted - Living Facilities, and At-Home Health Care Living Arrangements.

Legend provides assistance by evaluating Long-Term Care Insurance options and coordinating them with the needs of the client. These areas include:

  • Types of coverage
  • Amount of coverage
  • Term of coverage
  • Activities of Daily Living (ADL)
  • Coverage for mental illness
  • Cost

Medigap Insurance fills in the insurance gaps, that Medicare does not cover.  There are various levels of coverage to choose as well as a wide variation in premiums.  Evaluating pricing differences (Insurance premiums are based on factors such as community ratings, thoroughness of underwriting and health considerations) between each insurance company as well as the coverage differences among each of the ten mandated Medigap Insurance Plans (A, B, C, D, E, F, G, H, I and J) developed by the National Association of Insurance Commissioners (NAIC), can be difficult, if not downright intimidating.  Furthermore, insurability is another consideration.  Legend evaluates the clients’ needs and assists them in choosing the Medigap Insurance coverage that is right for them.  Legend will also coordinate the benefits a client may receive from their previous employer with the need for any additional coverage, including medical, long-term care or life insurance.

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EVALUATION/SELECTION ASSISTANCE WITH NURSING
HOMES, ASSISTED - LIVING FACILITIES, AND AT-HOME
HEALTH CARE LIVING ARRANGEMENTS

When the decision has been made that a client or their loved one has to be moved to either a nursing home, assisted living facility or receive at-home health care, Legend will assist in the evaluation and selection of a facility or service.  Also included in the evaluation are Continuing Care Retirement Communities or Lifecare Communities.  These facilities not only provide housing for individuals age 62 or older, who are in good health, but also provide on-site assisted living accommodations and skilled nursing care, should the client need it at virtually no additional cost.

A driving force behind Legend’s emphasis in assisting clients with this issue, is a study published by the American Journal of Public Health in September, 2001, which revealed that for-profit nursing homes tend to be poorly staffed and are cited for deficiencies by government inspectors almost 50% of the time.  This is slightly more frequent than nursing facilities administered by non-profit groups or public institutions.  In light of the poor record of all these facilities, a careful evaluation is necessary.  Legend will meet with the director of the program as well as review the facility’s contract, their accreditation and licenses, plus the services that they provide to their patients or residents, as may be applicable.

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